Pursuing ‘better jobs and growth’ in 2024 is a key priority for Singapore, according to the latest Budget Statement. 

The Budget 2024 speech by Deputy Prime Minister and Finance Minister Lawrence Wong focused on skills upgrading. Wong introduce a new SkillsFuture Level-Up Programme to better support the country’s mid-career workers.

According to Wong, all Singaporeans aged 40 and above will receive a top-up in SkillsFuture Credit of SGD 4,000 (USD 2,972). The Budget clarified that the government will confine its usage to selected training programmes with better employability outcomes. This includes part-time and full-time diploma, post-diploma, undergraduate programmes, as well as courses for the Progressive Wage Model sectors. And that is because Singapore wants participants taking up these programmes to be assured of better employment outcomes after they have completed their training.

Furthermore, Singapore will also provide subsidies to all Singaporeans aged 40 and above to pursue another full-time diploma at our Polytechnics, ITE, and Arts Institutions from Academic Year 2025 onwards.

The Budget also announced that Singapore will provide a monthly training allowance to Singaporeans aged 40 and above who enrol in selected full-time courses. This training allowance will be equivalent to 50% of one’s average income over the latest available 12-month period, and will be capped at SGD 3,000 (USD 2,229) per month. Every individual can receive up to 24 months of such a training allowance throughout their lifetime.

Meanwhile, the government will also introduce a temporary financial support scheme for the involuntarily unemployed, while they undergo training or look for better-fitting jobs.

“We have to design this scheme carefully, including the quantum of support and the conditionalities that come with the support,” Wong said. “This is to avoid the pitfalls that other countries experienced when they introduced unemployment benefits. We are working out the parameters for the scheme, and we will provide more details later this year.”

The Budget also addressed the wage gap and will enhance the Workfare Income Supplement scheme from next year. Furthermore, Wong said he will raise the qualifying income cap from SGD 2,500 (USD 1,857) to SGD 3,000 (USD 2,229).

“This ensures that we continue to cover lower-wage workers, even as their wages grow,” Wong said. “I will also raise Workfare payouts. Lower-wage senior workers will qualify for a maximum annual payout of SGD 4,900 (USD 3,640), from SGD 4,200 (USD 3,120) today.”

Wong will also raise the Local Qualifying Salary (or the LQS). All local employees at companies that hire foreign workers must be paid at least the LQS. Additionally, the government will provide more support for employers who raise the wages of their lower-wage workers.

As for emerging technology, the Budget detailed that it will invest more than SGD 1 billion over the next five years into AI compute, talent, and industry development. Part of the investment will be used to ensure that Singapore can secure access to the advanced chips that are so crucial to AI development and deployment.